Categories: Banking

RBI Cancels Registration of Two Entities for Regulatory Lapses

The Reserve Bank of India said it has cancelled the registration of Pune-based Kudos Finance and Investments and Mumbai-based Credit Gate for regulatory lapses in lending practices. With cancelled Certificate of Registration(CoR), the two NBFCs should not transact the business of a non-banking financial institution, the RBI said in a statement.

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Need of The Cancellation:

The Certificate of Registration(CoR) of the two NBFCs have been cancelled on account of violation of RBI Guidelines on Outsourcing and Fair Practices Code in their digital lending operations undertaken through third party apps, which was considered detrimental to public interest,” it said.

According to the statement, the entities were also not complying with the extant regulations pertaining to charging of excessive interest and had resorted to undue harassment of customers for loan recovery purposes.

RBI’s Continuous Effective Regulation:

Prior to this, the Reserve Bank of India (RBI) has asked online payment gateway PayU India to reapply for its initial payment aggregator (PA) licence.

You may also read: Govt to set up Bima Sugam Portal to address existing protection gap across General Insurance Business

 

Piyush Shukla

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